What Happens If I’m on Social Security and Become Eligible for Medicare?

The earliest age at which you can file for Social Security is 62. And many seniors opt to go that route, even if it means accepting a reduced monthly benefit by not waiting until full retirement age to sign up.

Because Medicare eligibility begins at age 65, many seniors find themselves already on Social Security by the time that coverage option opens up. The good news is that if you’re on Social Security at the time you become eligible for Medicare, you won’t need to sign up. Rather, you’ll be enrolled in Medicare automatically. But you may want to turn down your Medicare coverage, depending on your circumstances.

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Not everyone needs Medicare at age 65

If you’re already receiving Social Security benefits at age 65, it means that you may not be working any longer. If that’s the case, then the option to get onto Medicare may be appealing if you’ve been struggling with healthcare coverage.

However, it could be that you have health coverage through a job you’re still holding down (since you are allowed to work and collect Social Security at the same time), or through a spouse’s job. If that’s the case, enrolling in Medicare at age 65 may not necessarily be your best bet.

Although Medicare Part A, which covers hospital care, is generally free for enrollees, Part B, which covers outpatient and many diagnostic services, charges a monthly premium. If you’re on Social Security, your monthly Part B premiums will be deducted automatically from your monthly benefits so you don’t have to worry about paying them separately.

It may be that the healthcare coverage you’re getting from a group workplace plan (whether your own or a spouse’s) is superior to the coverage you’ll get under Medicare Part B. And it may be less costly, too. So in that case, it could pay to reach out to the Social Security Administration and let them know that you do not wish to sign up for Medicare Part B upon reaching age 65. At that point, as long as you’re covered by a qualifying group health plan elsewhere, you won’t be penalized for a late Medicare enrollment.

As far as Part A goes, since it’s free, you may want to accept that coverage at age 65. Even if you have health insurance through an employer, Medicare Part A can serve as secondary insurance and potentially cover certain hospital expenses your primary insurance doesn’t.

Know the rules

All told, it’s good to know the rules with regard to Medicare enrollment when you’re on Social Security. If that’s the boat you’re in and your 65th birthday is approaching, make a point to review your options so you have a game plan and aren’t stressed out on the spot.

It’s also a good idea to read up on Medicare and the costs and coverage it comes with. You might think you’re better off staying on your group health plan, but unless your premiums there are heavily subsidized, you may find that coverage under Medicare is actually your more cost-effective option.

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